Kimbell Royalty Partners reported third‑quarter 2025 results that included $80.6 million in revenue, $22.3 million in net income, and $17.0 million attributable to common units. Earnings per common unit rose to $0.19, a $0.06 beat over the consensus estimate of $0.13 and a $0.04 beat over the $0.15 estimate cited by some analysts. The company declared a cash distribution of $0.35 per unit, representing 75 % of the cash available for distribution and 25 % earmarked for debt repayment, with the payment scheduled for November 24.
Production remained robust, with a run‑rate of 25,530 barrels of oil equivalent per day and 86 rigs actively drilling on Kimbell’s acreage. The company’s share of the U.S. land‑rig count stood at 16 %, and the production mix was 48 % natural gas and 52 % liquids, underscoring a diversified portfolio across major onshore basins.
Cost discipline drove the earnings beat. Adjusted EBITDA reached $62.3 million, and cash G&A per BOE fell to $2.51, below the midpoint of guidance and reflecting operational discipline and positive operating leverage. Net debt of $448.5 million against trailing‑12‑month adjusted EBITDA of $62.3 million yields a net‑debt‑to‑EBITDA ratio of 1.6×, indicating a conservative balance sheet.
When compared to prior periods, revenue fell 4.5 % from $83.8 million in Q3 2024 and 12.4 % from $86.5 million in Q2 2025, reflecting a broader market slowdown. Net income attributable to common units declined from $17.4 million in Q3 2024 to $17.0 million in Q3 2025, while EPS dropped from $0.22 to $0.19. Despite the revenue miss, the EPS beat demonstrates that cost controls and a favorable production mix offset the top‑line decline.
Management highlighted the company’s operational resilience. Chairman and CEO Robert Ravnaas noted that the active rig count remains strong and that line‑of‑site wells continue to exceed the number needed to maintain flat production. He also emphasized that cash G&A per BOE was below guidance, underscoring disciplined spending, and that the distribution reflects a 10.7 % annualized tax‑advantaged yield based on the closing price on November 5.
Investors focused on the earnings beat as the primary driver of the positive reception to the results, while the modest revenue miss was viewed as a consequence of the general slowdown in U.S. oil and natural gas operations. The company’s continued focus on debt repayment and conservative payout policy signals confidence in its long‑term value creation.
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